A company is planning to buy a machine. The cost of the new machine i 50,000...

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A company is planning to buy a machine. The cost of the new machine i 50,000 TL, and the transportation and assembly cost is 30,000 TL. The old machine has been completely depreciated and as soon as the new machine is purchased, the old machine can be sold for 7000 TL. The service life of the new machine is 5 years and the company uses the straight-line method of depreciation. The tax rate is 40%. What should be the cash inflow/output for this investment? A company is planning to buy a machine. The cost of the new machine i 50,000 TL, and the transportation and assembly cost is 30,000 TL. The old machine has been completely depreciated and as soon as the new machine is purchased, the old machine can be sold for 7000 TL. The service life of the new machine is 5 years and the company uses the straight-line method of depreciation. The tax rate is 40%. What should be the cash inflow/output for this investment?

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Cash Inflow 50000 TL 30000 TL 7000 TL 87000 TL Cash Outflow 50000 TL 40 x 50000 TL 70000 TL Ne... View the full answer